By now, you've heard of the good news that hit the housing market this week: new home construction in July has risen a whopping 15.7 percent across the country, hitting an eight-month high that has stirred up excitement that the real estate market is regaining momentum after two months of decline.
Compared to the same period last year, July 2014 saw 1.09 million new homes constructed within the span of a month. Issuance of permits - also a sign of increasing future construction activity - also jumped by more than 8 percent. Broken down nationally, the increase and strength in construction rebound translates to 8.3 percent increase for single-family homes, and a massive 33 percent increase for apartment construction - certainly a great sign of the reality of the property sector's rebound.
Amongst all the major regional markets, the Northeast (to which Boston obviously belongs to), led the increase in constructions, coming in with 44 percent more constructions in July this year compared to the same period in 2013. Though not all of the new construction have gone off the market yet, there are definitely signs that developers are pursuing in order for them to heavily invest in projects. Positive sentiment and confidence for the housing market - both locally and nationally - are at an all-time high, too.
With all of this great new construction news comes the need to look at what is still deterring regular folk from purchasing homes that are newly-built? Well, market watchers believe that a mixture of fluctuating prices, higher mortgage rates, and weak work growth are the three most important factors that affect homebuyer's decision to go for newly-built than previously-owned. These factors, according to real estate moguls, are particularly affecting first-time home buyers who still have lingering fear of going into the market from the not-so recent housing market collapse of 2008.
One sure good thing that is coming out of the increase in newly-constructed homes however, is the number of job it creates for the masses. According to The National Association of Home Builders/Wells Fargo - each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, making the real estate cycle go round and round from laborer to homebuyer.
HIGH RISES RESPOND
With all of this welcome positive news about last month's stellar performance for newly-built homes, we couldn't help ourselves but to think of all the high rise home complexes that are also being built for delivery within the coming quarters. It seems that almost all of Boston's neighborhoods are responding quite nicely to the real estate rebound, given that most can only go and grow upward. From Back Bay, to South End, to Fenway and even as "far" away as Somerville, there seems to be a lot to look forward to in the city - and if you're about to get on board the market, then here are some of the tallest homes under construction in the city you should be inclined to checking out (or at least read about).
We've known for a while now that the Christian Science Plaza Tower would likely become the tallest skyscraper project in town, but its only recently that we've gotten more details of the project. For instance, the total height of the building has been under wraps until The Boston Globe revealed that it'll be less than a foot short of 700 feet - coming in first place as the tallest residential tower in town. Overall though, the tower will only be the third-tallest in the city, coming in behind commercial towers Prudential and the Hancock building.
Just to rehash, the Christian Science Plaza tower is a $700 milliondevelopment by Carpenter & Co and is designed by renowned architect Henry Cobb. It's set to have its first 20 floors of first-class hotel accommodations, with 211 lavish rooms for guests to lazy around in. The rest of its 60 stories will be dedicated condos, all-in-all totaling to 180 units, all of which will be managed by Four Seasons. Talk about a high-end high-rise!
Next up is the hotly-anticipated 625-foot Millennium Tower in Downtown Crossing. With that planned height, the tower is most likely come in at 4th place overall compared to other Boston skyscrapers, and second tallest for purely residential buildings. Its 56 stories will have a combined retail, commercial, and residential space, with 450 luxury condo units in total. It comes in the heels of the successful sale of Millennium Place, also in the same district.
Not to be outdone, the northern most tip of the city also has a jewel being built. The TD Garden's upcoming renovation and rise-up construction will prove to be another high-point (literally) in the city's chest of towers. With an elevated forest full of spires, the 600-foot, 45-story residential building will have 500 units on top of the building's arena.
Last but not the least, the long-delayed Copley Place Towerlooks to be finally on its way. The project got its final nod last fall, adding 52 stories to the current 4 floor Copley Place complex. It's slated to rise, in total, 625 feet above street level, and will include 433 apartments, and 109 cndos for sale. As it stands now, it will also have a retail ground floor component to complement the mall within it.
On the subject of all things Copley, it looks like the Back Bay Station is finally getting a complete makeover - and from the same people that'll bring the TD Garden up to date, too! Yes, that means that just like TD Garden's vertical expansion, it looks like Back Bay Station is getting one, too! Details of the development aren't exactly out yet, but sources say that it'll be composed of two towers, one of which is rumored to be a high-rise matching nearby Copley Place and complementing the Hancock tower. We'll definitely keep our eye and ears out for more info on that!